A coalition of petroleum product marketers and depot operators in Nigeria has accused Dangote Refinery of attempting to manipulate public sentiment against the Federal Government through its recent suspension of petroleum product sales in naira.
According to top stakeholders in the downstream sector, the suspension is not merely a business decision but a calculated move designed to trigger public discontent and compel the government to revisit the crude supply agreement that allowed the refinery to access domestic crude oil using the naira.
Depot owners and marketers argue that Dangote’s decision to revert to dollar-denominated transactions contradicts the economic reality of Nigerians who purchase refined products in the local currency.
They insist that the switch is unnecessary, especially since marketers have historically paid for imported petroleum products in dollars under previous subsidy regimes.
“The issue at hand is not about currency preference but the intent behind the decision,” a senior official in one of the marketers’ associations said. “Dangote Refinery is aware of the public sensitivity surrounding fuel prices and currency devaluation. By suspending naira sales, it is clearly pushing the government into a corner.”
Industry sources disclosed that the Federal Government’s Technical Sub-Committee on Domestic Crude Sales, chaired by Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), was scheduled to meet earlier in the week to address the naira-for-crude arrangement.
However, the meeting was shelved after the Nigerian Midstream and Downstream Petroleum Regulatory Authority failed to present its report on crude availability and market dynamics.
Meanwhile, members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have expressed concern that continued pressure to transact in foreign currency could further destabilize the naira and worsen the country’s already fragile foreign exchange market.
“The global oil market may be dollar-driven, but forcing local marketers to continue sourcing dollars to buy locally refined fuel is economically counterproductive,” said Olufemi Adewole, Executive Secretary of DAPPMAN.
Adewole warned that sustaining the dollar-only model could drive smaller marketers out of business and create artificial scarcity, ultimately affecting pump prices across the country. Already, some marketers are exploring alternative supply sources should Dangote Refinery maintain its hardline stance.
Before the suspension of naira transactions, Dangote Refinery had slightly reduced its ex-depot price to N815 per litre, which had helped ease pricing pressure in the market.
However, with the facility now focused on dollar payments, fears are mounting over a potential hike in retail prices with current pump prices already fluctuating between N860 and N950 per litre depending on the region.
Industry players have said fuel imports before the refinery became operational were transacted in dollars without public uproar.
However, they noted that the shift in public perception, coupled with the refinery’s scale and prominence, has now made the pricing structure a politically sensitive matter.
They argue that while Dangote’s contribution to local refining capacity is welcome, the refinery must avoid weaponizing its position to influence government policy or create unnecessary tension in the market.
As government agencies continue internal consultations over the future of domestic crude allocation and pricing frameworks, marketers are urging transparency, balance, and market-based solutions that ensure long-term industry stability without compromising national economic objectives.
The Dangote Refinery with a refining capacity of 650,000 barrels per day is considered a strategic asset in Nigeria’s downstream sector.
However, industry observers warn that its dominance must be carefully managed to prevent monopolistic tendencies and economic disruptions.
